Eligibility Criteria To Become An Authorised Partner in India

An authorised partner works under the umbrella of SEBI-registered stock brokers. Securities Exchange Board of India (SEBI) is the Indian stock market regulator, whose task is to safeguard investors from financial fraud and bring transparency in market.

Stock broking houses are those entities who provides platform to investors to buy and sell securities and act as a link between the stock exchange and investors. The stock exchange is a marketplace where investors gather to place a bid for secondary shares.

Eligibility Criteria To Be An Authorised Partner

The eligibility criteria to become an authorised partner are discussed below:

1. Educational Qualification: The market regular SEBI requires the applicant to have at least passed the class 10th examination from a recognised board. If the applicant is a graduate from a finance background, then it’s good; however, graduates from any field are eligible.

2. Nationality and Minimum Age: An applicant must be a citizen of India and at least 18 years of age. However, some brokers keep the minimum age requirement to 21 years to ensure the applicant is mature and understands the roles and responsibilities of AP.

3. Basic Infrastructure: An applicant must have basic infrastructure to run the business operations. The infrastructure includes an internet connection, a computer setup, a telephone connection and an office space. For individuals, office space is not mandatory; operations can also be carried out from home.

4. Legal Conditions: The other legal conditions are listed below.

• An applicant must not be a trading member of any stock exchange.
• Must not be a registered partner or a member of any other authorised organisation.
• Must not engage in any fraud or criminal activity as per previous records.
• Clean image in public, as the broker’s brand will be added.

Requirements By Stockbrokers

Some broking companies may have some internal requirements for authorised partners. These are not mandatory and are subject to change depending on brokers.

• A security deposit amount
• A basic infrastructure setup with a dedicated office.
• Completion of the onboarding training module
• Proof of present address for business purposes.

Why Are Authorised Partners Important?

Authorised partners are important because they act as a link between the investors and stockbrokers. They help brokers to expand the market reach and assist new investors in the process of opening a demat and trading account.

By operating under the guidelines of the market regulator SEBI and the stock exchanges, APs promote transparency, investor awareness and contribute to the overall growth of India’s financial markets.

Why is the Eligibility Criteria Important?

Eligibility criteria are important for regulatory checkmarks and to filter the serious applicants capable of meeting the investors' needs. It ensures that qualified, trustworthy individuals act as authorised partners and prevents the erosion of trust from financial industry.

By meeting criteria set by exchanges and regulators, the authorised partners can deliver professional services, comply with regulations and operate responsibly under stock brokers' supervision.